You are here: News / Barclays closes Firstplus loans and cuts 300 jobs
Barclays closes Firstplus loans and cuts 300 jobs
Archived article dated Wednesday July 9th 2008
Secondary homeowner loans dry up putting more pressure on consumer finances - less will be spent on the high street.
Barclays' Firstplus division, which provides secured loans to homeowners who already have mortgages on their properties, is not taking on any new business. The group said that the secondary homeowner loans sector had been affected by increased mortgage costs, falling equity and a drop in market demand.
Secondary homeowner loans have long been a way of consolidating assorted monthly loans into one 'affordadble' monthly payment, often freeing up cash which is then spent on the high street. But the fall in house prices meant that a loan could become effectively unsecured since the value of both loans could exceed the value of the property. Neil Radley, managing director of Firstplus, said: “In the past year we have tried a whole range of activities to develop our business but the market demand simply isn't strong enough. We recognise this is a difficult time for our people and will be providing all those affected with support and assistance.”
Around 130 people will be retained in Cardiff to look after existing customers and around 300 staff will be affected by the decision, said Barclays, adding that every effort was being made to find them alternative jobs across the Barclays businesses.
Tagged as: barclays | credit crunch |
Share this article:
Should your colleagues be reading the Retail Bulletin?
Let them know about us.
